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Parilo Company acquired $204,000 of Makofske Co., 7% bonds on May 1, 2016, at their face amount. Interest is paid semiannually on May 1 and
Parilo Company acquired $204,000 of Makofske Co., 7% bonds on May 1, 2016, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 2016, Parilo Company sold $57,600 of the bonds for 97.
Journalize entries to record the following (refer to the Chart of Accounts for exact wording of account titles):
May | 1 | Initial acquisition of the bonds |
Nov. | 1 | Semiannual interest received |
1 | Sale of the bonds | |
Dec. | 31 | Accrual of $1,708 interest |
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